IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v33y1999i9p857-867.html
   My bibliography  Save this article

The Regional Distribution of Foreign Direct Investment in China

Author

Listed:
  • Yingqi Wei
  • Xiaming Liu
  • David Parker
  • Kirit Vaidya

Abstract

WEI Y., LIU X., PARKER D. and VAIDYA K. (1999) The regional distribution of foreign direct investment in China, Reg. Studies 33 , 857-867. This paper analyses the determinants of the regional distribution of both pledged and realized foreign direct investment (FDI) within China. The econometric properties of the panel data set are examined using a standardized 't-bar' test for unit root. The empirical results indicate that there exists a long run relationship between the spatial distribution of FDI and a number of regional characteristics. Provinces with a higher level of international trade, lower wage rates, more R&D manpower, higher GDP growth rates, quicker improvement in infrastructure, more rapid advances in agglomeration, more preferential policies and closer ethnic links with overseas Chinese attract relatively more pledged FDI. WEI Y., LIU X., PARKER D. et VAIDYA K. (1999) La distribution regionale de l'investissement direct etranger en Chine, Reg. Studies 33 , 857-867. Cet article cherche a analyser les determinants de la distribution regionale de l'investissement direct etranger en Chine, soit engage soit realise. Les proprietes econometriques de l'ensemble des donnees etablies a partir d'une enquete se voient examiner en employant un test 't-bar' normalise de la racine unitaire. Les resultats empiriques laissent voir qu'il existe un rapport a long terme entre la distribution geographique de l'investissement direct etranger et un nombre de caracteristiques regionales. Les provinces qui attirent proportionnellement plus d'investissement direct etranger engage sont celles qui ont un niveau de commerce international plus eleve, des taux de salaire moins eleves, un taux d'emploi dans la R et D plus important, des taux de croissance du PIB plus importants, une amelioration plus rapide de l'infrastructure, des progres plus rapides en faveur de la notion d'agglomeration, plus de politiques de faveur et des liens ethniques plus etroits avec les Chinois a l'etranger. WEI Y., LIU X., PARKER D. und VAIDYA K. (1991) Die regionale Verteilung auslandischer Direktinvestierungen in China, Reg. Studies 33 , 857-867. Dieser Aufsatz analysiert die bestimmenden Faktoren der regionalen Verteilung zugesicherter und realisierter auslandischer Direktinvestierungen (Foreign Direct Investment= FDI) in China. Die okonometrischen Eigenschaften des kombinierten Informationstragers werden mit Hilfe eines standardisierten 't-bar Tests' fur Einheitenlosungen untersucht. Die empirischen Ergebnisse deuten darauf hin, dass es eine langjahrige Beziehung zwischen der raumlichen Verteilung der auslandischen Direktinvestierungen und einer Anzahl regionaler Eigenschaften gibt. Provinzen mit hoherem Volumen internationaler Handelsbeziehungen, niedrigeren Lohnraten, mehr Arbeitskraften in Forschung und Entwicklung, hoheren Wachstumsraten, Bruttoinlandsproduktion, schnellerbewerkstelligten Verbesserungen der Infrastruktur, beschleunigtem Vorschreiten von Agglomeration, mehr Vorzugsentscheidungen und engeren ethnischen Beziehungen zu Chinesen in Uberseeziehen verhaltnismassig mehr zugesicherteauslandische Direktinvestierungen an.

Suggested Citation

  • Yingqi Wei & Xiaming Liu & David Parker & Kirit Vaidya, 1999. "The Regional Distribution of Foreign Direct Investment in China," Regional Studies, Taylor & Francis Journals, vol. 33(9), pages 857-867.
    • Handle: RePEc:taf:regstd:v:33:y:1999:i:9:p:857-867
    DOI: 10.1080/00343409950075498
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343409950075498
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343409950075498?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Bartik, Timothy J, 1985. "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 14-22, January.
    3. Sanjaya Lall, 1980. "Monopolistic Advantages and Foreign Involvement by US Manufacturing Industry," Palgrave Macmillan Books, in: The Multinational Corporation, chapter 1, pages 3-28, Palgrave Macmillan.
    4. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
    5. Yoong-Deok Jeon, 1992. "The determinants of Korean foreign direct investment in manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 128(3), pages 527-542, September.
    6. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    7. John H. Dunning, 1977. "Trade, Location of Economic Activity and the MNE: A Search for an Eclectic Approach," Palgrave Macmillan Books, in: Bertil Ohlin & Per-Ove Hesselborn & Per Magnus Wijkman (ed.), The International Allocation of Economic Activity, chapter 12, pages 395-418, Palgrave Macmillan.
    8. Culem, Claudy G., 1988. "The locational determinants of direct investments among industrialized countries," European Economic Review, Elsevier, vol. 32(4), pages 885-904, April.
    9. Mark Casson, 1994. "Why are Firms Hierarchical?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(1), pages 47-76.
    10. Sergio Mariotti & Lucia Piscitello, 1995. "Information Costs and Location of FDIs within the Host Country: Empirical Evidence from Italy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(4), pages 815-841, December.
    11. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 17-45, National Bureau of Economic Research, Inc.
    12. Venables, Anthony J, 1996. "Equilibrium Locations of Vertically Linked Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 341-359, May.
    13. Head, Keith & Ries, John, 1996. "Inter-City Competition for Foreign Investment: Static and Dynamic Effects of China's Incentive Areas," Journal of Urban Economics, Elsevier, vol. 40(1), pages 38-60, July.
    14. Coughlin, Cletus C & Terza, Joseph V & Arromdee, Vachira, 1991. "State Characteristics and the Location of Foreign Direct Investment within the United States," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 675-683, November.
    15. John H Dunning, 1980. "Towards an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 11(1), pages 9-31, March.
    16. Horst, Thomas, 1972. "The Industrial Composition of U. S. Exports and Subsidiary Sales to the Canadian Market," American Economic Review, American Economic Association, vol. 62(1), pages 37-45, March.
    17. Coakley, Jerry & Kulasi, Farida, 1997. "Cointegration of long span saving and investment," Economics Letters, Elsevier, vol. 54(1), pages 1-6, January.
    18. Peter J. Buckley & Mark Casson, 1991. "The Future of the Multinational Enterprise," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-21204-0, December.
    19. Xiaming Liu & Haiyan Song & Yingqi Wei & Peter Romilly, 1997. "Country characteristics and foreign direct investment in China: A panel data analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(2), pages 313-329, June.
    20. Robert Grosse & Len J Trevino, 1996. "Foreign Direct Investment in the United States: An Analysis by Country of Origin," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(1), pages 139-155, March.
    21. Zhang, Le-Yin, 1994. "Location-specific advantages and manufacturing direct foreign investment in South China," World Development, Elsevier, vol. 22(1), pages 45-53, January.
    22. F W Peck, 1996. "Regional Development and the Production of Space: The Role of Infrastructure in the Attraction of New Inward Investment," Environment and Planning A, , vol. 28(2), pages 327-339, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nielsen, Bo Bernhard & Asmussen, Christian Geisler & Weatherall, Cecilie Dohlmann, 2017. "The location choice of foreign direct investments: Empirical evidence and methodological challenges," Journal of World Business, Elsevier, vol. 52(1), pages 62-82.
    2. Àngels Pelegrín & Catalina Bolancé, 2006. "Regional foreign direct investment in manufacturing. Do agglomeration economies matter?," Working Papers 2006/2, Institut d'Economia de Barcelona (IEB).
    3. Angels Pelegrin & Catalina Bolance, 2008. "Regional Foreign Direct Investment in Manufacturing. Do Agglomeration Economies Matter?," Regional Studies, Taylor & Francis Journals, vol. 42(4), pages 505-522.
    4. Pontus Braunerhjelm & Per Thulin, 2009. "Agglomeration, Relative Wage Costs and Foreign Direct Investment—Evidence from Swedish MNCs 1974–1998," Journal of Industry, Competition and Trade, Springer, vol. 9(3), pages 197-217, September.
    5. Àngels Pelegrín, 2003. "Regional Distribution of Foreign Manufacturing Investment in Spain. Do Agglomeration Economies Matter?," Working Papers 2003/6, Institut d'Economia de Barcelona (IEB).
    6. Hassan, Sohaib Shahzad & Jindra, Björn & Cantner, Uwe & Günther, Jutta, 2013. "Emerging market multinationals in the European Union – A location choice analysis," MPRA Paper 52002, University Library of Munich, Germany.
    7. Kandogan, Yener, 2012. "Regional foreign direct investment potential of the states within the US," Journal of Economics and Business, Elsevier, vol. 64(4), pages 306-322.
    8. Montserrat Álvarez, 2003. "FDI Determinant Factors: The Case of Catalan Multinational Manufacturing Firms," Working Papers 2003/4, Institut d'Economia de Barcelona (IEB).
    9. Àngels Pelegrín, 2003. "Regional Distribution of Foreign Manufacturing Investment in Spain. Do Agglomeration Economies Matter?," Working Papers 2003/6, Institut d'Economia de Barcelona (IEB).
    10. Bergman, Mats A. & Johansson, Per & Bergman, M.A., 2002. "Large investments in the pulp and paper industry: a count data regression analysis," Journal of Forest Economics, Elsevier, vol. 8(1), pages 29-52.
    11. Constantina Kottaridi & Fragkiskos Filippaios & Marina Papanastassiou & Robert Pearce, 2013. "Regional Mix and the Roles of Foreign Subsidiaries: A New Conceptualization and Empirical Evidence on the UK Case," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 63(1-2), pages 47-74, June.
    12. Christian Hilber & Ioan Voicu, 2010. "Agglomeration Economies and the Location of Foreign Direct Investment: Empirical Evidence from Romania," Regional Studies, Taylor & Francis Journals, vol. 44(3), pages 355-371.
    13. Borsos-Torstila, Julianna, . "The Determinants of Foreign Direct Investment Operations of Finnish MNCs in Transition Economies 1990-1995," ETLA A, The Research Institute of the Finnish Economy, number 28, June.
    14. Bergman, Mats & Johansson, Per, 2000. "Strategic Investments in the Pulp and Paper Industry: A Count Data Regression Analysis," Umeå Economic Studies 536, Umeå University, Department of Economics.
    15. Jindra, Björn & Hassan, Sohaib S. & Cantner, Uwe, 2016. "What does location choice reveal about knowledge-seeking strategies of emerging market multinationals in the EU?," International Business Review, Elsevier, vol. 25(1), pages 204-220.
    16. Czesława Pilarska, 2018. "Efekty zewnętrzne bezpośrednich inwestycji zagranicznych z perspektywy kraju goszczącego," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 93-124.
    17. Shima’a Hanafy, 2014. "Determinants of FDI Location in Egypt: Empirical Analysis Using Governorate Panel Data," Working Papers 875, Economic Research Forum, revised Nov 2014.
    18. Sethi, Deepak & Guisinger, Stephen & Ford, David L. & Phelan, Steven E., 2002. "Seeking greener pastures: a theoretical and empirical investigation into the changing trend of foreign direct investment flows in response to institutional and strategic factors," International Business Review, Elsevier, vol. 11(6), pages 685-705, December.
    19. Du, Julan & Lu, Yi & Tao, Zhigang, 2008. "Economic institutions and FDI location choice: Evidence from US multinationals in China," Journal of Comparative Economics, Elsevier, vol. 36(3), pages 412-429, September.
    20. Muhammad Tariq Majeed & Eatzaz Ahmad, 2009. "An Analysis of Host Country Characteristics that Determine FDI in Developing Countries: Recent Panel Data Evidence," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 14(2), pages 71-96, Jul-Dec.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:33:y:1999:i:9:p:857-867. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.